The National Bank of Abu Dhabi’s NBAD Mena Bond Fund has earned dividend income equivalent to $4.58 million for USD share class, Dh2.88 million ($786 million)for the AED share class and EUR 57,177.14 ($62,575) for the EURO share class.

The dividend equates to an annualized yield of 3.74 per cent in the USD share class, 3.62 per cent in the AED share class and 2.16 per cent in the EURO share class during the period from April 1 to September 30.

Eligible investors who had successfully subscribed to the Fund by September 30 were entitled for a semi-annual dividend distribution which equals to 2.33 per cent for USD share class, 1.90 per cent for the AED share class and 1.68 per cent for the EURO share class of the net asset value (NAV) of the fund as at September 30.

Accordingly, each unit in the Fund will receive a dividend pay-out of $0.1129 for USD share class, Dh0.0925 for the AED share class and EUR 0.0851 for the EURO share class.

The dividend payout will be based on the payout preference selected by the investor at the time of subscription. For those who selected the re-investment option, the dividends will be reinvested on October 19 and for those who have selected the cash payout option, the proceeds will be credited into their NBAD bank account by October 20.

“In what continues to be a challenging global economic environment with the knock on impacts on financial assets, it is pleasing to be able to distribute these healthy earned dividends for the Fund,” said Ian Clarke, head of Fixed Income at NBAD Global Asset Management.

“The yield on the Fund remains above 5 per cent, backed by the strong credit quality of issuers in the region.  The global, economic backdrop remains challenging but the strong balance sheets in the region provide some safe haven characteristics to Mena credit, and this should support the Fund’s returns over time,” he added.

NBAD’s Global Asset Management manages assets in excess of Dh8.4 billion, making it one of the largest of its kind in the UAE. – TradeArabia News Service